#CEXvsDEX101

Centralized Exchanges (CEXs) and Decentralized Exchanges (DEXs) are key crypto trading platforms. CEXs, like Binance or Coinbase, act as intermediaries, offering fast trades, high liquidity, and user-friendly interfaces but require KYC and custody user funds. DEXs, such as Uniswap or PancakeSwap, run on smart contracts without intermediaries, offering privacy, self-custody, and greater control but may have lower liquidity and slower execution. CEXs are better for beginners and large trades; DEXs suit privacy-focused and DeFi-native users. Each has pros and cons—CEXs offer convenience and speed; DEXs offer freedom and transparency. Traders often use both to maximize benefits depending on their strategy and security preferences.